Minister: Small firms must look to exports

Small businesses must look overseas to trade their way out of the downturn.

Broadening horizons: Small businesses should look overseas for success

That was the conclusion of Enterprise Minister Mark Prisk at a parliamentary briefing on Wednesday to mark Global Entrepreneurship Week.

Prisk said there were three aspects to creating a truly global business. First, develop a world enterprise programme, which requires firms already trading abroad to help and advise other small businesses looking to do likewise.

Second, he said international trade advisers should work together, 'whether from UK Trade & Investment (UKTI) or the Foreign Office'.

Third, when it comes to emerging markets, Prisk said Ministers needed to 'stop being so coy' and engage early on with countries to build economic relationships.

According to NatWest/RBS, Britain could be 'on the verge of an exporting boom', but only if firms get the help they need. Its research shows that 69% of businesses say now is the time to increase overseas trading, but they are not getting the help they need.

Nearly two-thirds say banks could do more to help them increase export activity while 58% said better access to advice from experts in overseas trade would give them more confidence in exporting.

In response, NatWest/RBS is offering free training courses to help firms manage risks when trading overseas in new markets.

Entrepreneur James Caan, a judge on TV's Dragons' Den, has welcomed the Government's pledges to encourage entrepreneurialism, but he says he is 'more interested in the action and the results than the theory'.

While welcoming moves to encourage firms to expand overseas, Caan also urges small businesses to ensure they conquer the British market first.

'Only when a business has secured the domestic market should they be looking at the international market, with all of the issues, such as currency swings and foreign laws, that that entails,' he says. 'There is a danger that firms overlook the value of the UK market.'